Companies in liquidation cannot adjudicate where there are claims and cross claims

In a judgement which is likely to be of interest to many in the construction industry, the Technology and Construction Court has recently held that a company in liquidation cannot refer a dispute to adjudication where there are claims by a company in liquidation and cross claims by the other party.

This is because following the liquidation of one of the parties, the set off provisions of the Insolvency Rules apply. That is the only dispute that there can be, and it is not a dispute under the Construction Act. There is therefore nothing that can be referred to adjudication.

It is to be noted that this judgement only relates to companies in liquidation (not to companies in other forms of insolvency arrangements).
[Michael J Lonsdale (Electrical) Limited v Bresco Electrical Services Limited (in liquidation) [2018] EWHC 2043

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